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It seems 89m pizzas is still not enough.
Investors are certainly not happy with Domino’s Pizza Group this morning. Despite the company posting a 14 per cent rise in revenues last year (from 89m pizzas, 2.6m of which were of the Hawaiian variety) shares have plunged more than 12 per cent, making the UK-listed franchise the worst performer in the FTSE All Share index this morning.
UK sales growth was also softer than the previous year, rising just 7.5 per cent in 2016 compared to 11.7 per cent the previous year.
Analysts at UBS pointed out that like-for-like UK sales growth of 1.5 per cent in the first nine weeks of the year was also weak and indicated a slowing of the 3.9 per cent pace in the third quarter of last year – with investors likely to take a negative view on further weakness.
The rapid plunge this morning to below 340p a share ends a steady run of share price growth for the past four months and leaves the stock languishing at its weakest level since November.
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